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Page 4 W &S Rate Study Committee Minutes 8/22/91 The next schedule is for those customers that qualify for an industrial water rates which requires a 4" meter. The 4" meter base cost of $1,000.00 entitles the customers to 100,000 CF, anything over that is an additional cost of $1.05 per 100 CF. A customer with a 6" meter, the base cost of $1,475.00 for the first 150,000 CF, anything over that is $1.05 per 100 CF. A customer with a 8" meter or over, the base cost is $1,950.00 plus 1.05 per 100 CF. Mr. Reed said those companies that takes the option to be on the industrial rate, they have to sign an agreement to stay on the rate for one year. Mr. Reed went over the rates for those who have contracts for water such as Campbell Soup, Tenaska, and Lamar County Water Supply, with general discussion from the audience. Mr. Reed stated that the next schedule of rates, Exhibit WW -9, Consultant Recommended Wastewater Rate Schedule, which is the wastewater rates that are to be charged. For a meter size of 5/7" - 3/4 ", the base cost will be $5.93 for 200 CF, anything over the 200 CF will be $2.03 per 100 CF. A meter 1" - 2", base cost will be $22.26 for the first 1,000 CF, anything over that will be $2.04 per 100 CF. A meter greater than 2 ", the base cost will be $42.94 for the first 2,000 CF, and $2.05 per 100 CF there after. Mr. Reed told the Council that each customer by his usage pattern establishes it own maximum, the City's accounts for the months of November, January, and February, you add up your consumption for these three months, and that is assumed that is the amount of water used each month through the year, or for domestic purpose that gets back into the system, anything above and beyond that amount that flows through your account, you do not have to pay sewer charge. Mr. Reed stated that each customer has its own individual calculated maximum amount of sewer they will have to pay, which is based on the average of November, January, and February. Mr. Reed pointed out that this cap only applies to single family residences. Mr. Reed advised that all of those charges are calculated and based on the assumption that those customers are not dischargers of real high toxic waste of any kind. Mr. Reed said that everyone who runs a system of that type, and discharges a high toxic of real high level of TSS or BOD are in what is called a monitored group. Mr. Reed explained that these rates applies to these customers, and in addition to those rates, there is a charge for each extra pound of BOD, TSS, and NH3. Mr. Reed said that Merico's contract calculation, which they have a settle up provisions in their contract. Their rate is based upon the estimated budget per year to perform certain functions, and based upon the volume flow that goes through and discharged by Merico, they also pay according to their contract an excess strength BOD and TSS. Mr. Reed show a comparison for the rate for residential customers of what they are paying right now compared to what is being recommended for 1991 both water and wastewater, reflected at various levels of consumptions. Also shown is a commercial customers water and sewer rates by consumption comparison.